Expedia Group has become the latest company to launch its own media network for advertisers.
The “Travel Media Network” leverages first-party data from across online travel agencies such as Vrbo, Travelocity, and Orbit.
The online travel agency group will also focus on building a programmatic advertising data business.
Analysis: The wave of “non-retail” media networks
Retail media is now clearly “big business” not only for retailers but also for travel companies and other players.
Distribution companies like Deliveroo have been launching their own ad networks over the past two years, alongside financial institutions like Revolut.
Sean Crawford, managing director of retail media agency Threefold (part of SMG Network), told Media Leader that companies like Uber and Marriott are “already well established” in this space. He emphasized travel advertising and “partnership marketing.” What happens between hotel groups, airlines, travel companies and car companies is “not new”.
However, Expedia's travel media network is different.
Crawford explained: “Some may see this as just a rebranding, but we argue that what sets us apart from Expedia's retail media network is that we have far greater capabilities due to the opportunity to use Expedia's valuable first-party data.” To do.
“Not many travel companies offer this (yet), so we are definitely able to stand out from the competition with an attractive offer.”
Asked what other companies might follow Expedia Group's lead, Crawford said United Airlines will be equipped “later this year” with “really innovative solutions that haven't come to market yet.” The company said it plans to launch a retail media network based on the airline's global network and hopes other airlines will do the same. Follow that.
He also added that it would be “no surprise” that “other large travel groups” would move to media network solutions. Following the success of traditional retail networks such as Roundel by Target in the US and Boots Media Group in the UK, a wave of 'non-retail' networks has emerged, such as the recently launched Chase Media Solutions. “There is,” he said.
He said “successful” retail media networks will provide advertisers with additional audiences through first-party data capabilities, “robust and transparent measurement” of media performance, and most importantly, “an enhanced end-customer experience.” He added that it would be a network.
Media planning consultant Pete Robbins describes Expedia's travel media network as “retail media-like,” digital-only, rather based on physical distribution, and focused on non-proprietary brands. It's very similar to that.''
He said the travel market is “huge beyond advertising in terms of transactions” and that travel brands have been advertising on travel sites “for as long as I can remember”, but that travel agency data “could be useful”. No,” he emphasized. Depending on Expedia's approach, the site could represent a “larger incremental opportunity” for his company.
Robbins added: “But in all cases other than endemics, you have to think carefully about whether the data is suitable for purchase, even in adjacent categories. Of course, the profits are significantly lower than if you were to buy locally, but Unless highly relevant, a local purchase can become a less relevant “media/advertisement” moment if someone is trying to find a flight. ”
Crawford said traditional retailers' media networks such as Boots, Morrisons and Asda derive more than 90% of their advertising revenue from unique brands and can leverage physical stores to drive demand; He emphasized that this is something that a “pure emm player” like Expedia cannot do. to do.
Crawford pointed to GroupM's prediction that retail media revenues will exceed linear TV and connected TV combined by 2028, adding: “I would argue there's plenty of demand, but the market is particularly “Competition is intensifying in non-indigenous brands.” . In non-endemic areas, you have a whole advertising ecosystem to choose from. From traditional media like TV and his OOH, to programmatic and social, and now retail media networks. ”
